LLQP Accident & Sickness · Component 1.3 · 35% of the exam
The primary financial risk that disability insurance addresses is:
- Loss of earned income while living expenses continue or rise
- BLoss of investment capital when markets fall during a period of serious illness
- COutliving retirement savings because a disability cut the working years short
- DDeath before the family's mortgage and education obligations have been met
Correct answer: A) Loss of earned income while living expenses continue or rise
The curriculum frames the A&S needs analysis around risks of loss of livelihood or standard of living. Disability removes income while expenses persist — the defining exposure of a working client.
Why the other options are wrong
- BMarket risk is an investment matter, not what disability insurance addresses.
- CLongevity is a retirement planning risk; disability insurance covers the working years.
- DDeath is the life insurance risk.
Exam tip
Disability = income stops, expenses continue. That is the need statement.
Common mistake
Confusing the A&S need with the life insurance need.
What this tests
CISRO competency component 1.3 — Assess the client's needs and situation — which is weighted at 35% of the Accident & Sickness module. Written against the published curriculum.
More from component 1
- The single most important fact for sizing a client's disability income need is:
- A client's beneficiaries for assets are listed in the fact-finding. Why does this matter for A&S planning?
- A client asks why the agent wants to know how assets are owned (jointly or individually). In the A&S context the answer is:
- A client mentions a back injury five years ago that fully resolved. The agent should:
- Which element of a client's situation most affects the definition of disability that should be recommended?
- Which of the following health facts is most relevant to a client's disability insurance situation?
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.